Shiba Inu, the meme-based cryptocurrency that gained massive popularity in the wake of 2021’s bull market, has been experiencing a significant downturn in its value recently. The asset is now trading below the 50-day moving average, and analysts predict that it could soon face a “death cross” on the charts.
The death cross is a technical analysis term used to describe the point at which the short-term moving average crosses below the long-term moving average, indicating a bearish trend. In the case of SHIB, the 50-day moving average has crossed below the longer 200-day EMA, leading to the formation of a death cross. However, not all analysts believe in the significance of death and golden crosses and firmly believe that they do not have any analytical value.
This trend is a cause for concern for SHIB investors, as it indicates that the asset’s price could continue to decline in the near future. Currently, Shiba Inu is trading at a price level of $0.00001, which is the lowest it has been in 40 days.
The downward trend of SHIB can be attributed to a number of factors. Firstly, the broader cryptocurrency market has experienced a downturn in recent weeks, with many assets losing significant value. Additionally, the hype surrounding meme coins seems to be fading, leading to a decrease in demand for SHIB.
Despite the bearish outlook for SHIB, some analysts believe that the asset could rebound in the coming months. However, this would depend on a number of factors, including a resurgence in demand for meme coins and an overall recovery of the cryptocurrency market.
